Johannesburg - Julius Malema and his business partner Lesiba Gwangwa stand to lose more than R20 million in known properties and assets if found guilty of fraud, corruption and money laundering.
These include a string of houses in leafy suburbs, plots, farms, an office park and luxury cars owned through their embattled company On-Point and its sister firms.
This is because they were purchased with the proceeds of On-Point’s R52m project management tender that Public Protector Thuli Madonsela slammed as unlawful, fraudulent and corrupt in her provisional report.
The two families could find themselves homeless if the Hawks succeed in proving their case against them.
Malema and Gwangwa directly own the properties and assets, or own them through their companies - On-Point Engineers, Gwama Properties, Segwalo Consulting Engineers, Guilder Investments 59, Qualis Health and Mminathoko Infrastructure.
These are just some of the men’s properties:
- Plot in Palmietfontein Farm (Polokwane) - Malema’s trust paid R900 000 cash in June 2010.
- Schuilkraal Farm (Polokwane): bought in August 2011 for R3.9m.
- Bendor Extension 25: bought in October 2010 for R13m.
- Portion 2 of Erf 4324, Bendor Extension 5: bought in October for R1.4m.
- Welgelegen (Polokwane): acquired for R1.7m.
- Fairview, 462, unit 5 (Polokwane): bought for R2.5m.
- Fairview, 462, unit T5 (Polokwane): acquired for R1.5m.
- Clear Waters Extension (Tzaneen): purchased for R500 000.
- De Villiers Avenue, Bendor (Polokwane): for R500 000.
- 623 Bendor (Polokwane): bought for R367 000.
- Ismini Office Park (Polokwane): Gwangwa offered R2.5m for the property.
- Sandown Property (Sandton): worth R8m.
The properties are owned by companies in which Malema and Gwangwa’s family trusts are the majority or sole shareholders.
In her provisional report into corruption allegations against On-Point, Malema and Gwangwa, the public protector suggested that the men’s trusts were nothing but vehicles created to launder money.
The report found Malema had used his Ratanang Family Trust to receive dividends worth R2m from On-Point between November 2011 and May this year.
Madonsela also found the men “improperly” benefited from On-Point’s unlawful and fraudulent tender. She recommended law enforcement agencies and authorities take steps to recoup some of the money.
The Star